e-commerce - ibef.org · b2b e-commerce, as per the new foreign direct investment (fdi) policy,...

For updated information, please visit www.ibef.org July 2019

E-COMMERCE

Table of Content

Executive Summary……………….….…….3

Advantage India…………………..….……..4

Market Overview …………………….……..6

Strategies Adopted………….……..…..…..14

Growth Drivers and Opportunities…….…..17

Industry Associations……………...…….....25

Useful Information……….......……….……..27

For updated information, please visit www.ibef.orgE-commerce3

38.50 50.00 63.70

150.00200.00

050

100150200

2017 2018F 2020F 2022F 2026F

445.96 604.21 636.73 700.00829.00

0

500

1,000

2017 2018 2019 2020 2021

Internet Users in India (million)

India’s Internet Economy (US$ billion)

125.00

250.00

0

100

200

300

FY17 2020

Indian E-commerce Market (US$ billion)

Source: Media sources, BCG – The $250 billion Digital Volcano, BCG – Digital Consumer Spending in India, Kalaari Capital - Imagining Trillion Dollar Digital India

The Indian E-commerce industry has been on an upward growthtrajectory and is expected to surpass the US to become the secondlargest E-commerce market in the world by 2034. The E-commercemarket is expected to reach US$ 200 billion by 2026 from US$ 38.5billion in 2017.

India's e-commerce market has the potential to grow than four foldsto US$ 150 billion by 2022 supported by rising incomes and surge ininternet users

With growing internet penetration, internet users in India areexpected to increase from 445.96 million in 2017 to 829 million by2021. As of December 2018, internet subscribers in India stood at604.21 million people.

The total internet subscriber base in India stood at 636.73 million subscribers in In FY19.

Each month, India is adding approximately 10 million daily activeinternet users to the internet community supporting the ecommerceindustry which is the highest rate in the world.

Online shoppers in India are expected to reach 220 million by 2025.

India’s internet economy is expected to double from US$125 billionas of April 2017 to US$ 250 billion by 2020, majorly backed by E-commerce.

Digital transactions are expected to reach US$ 100 billion by 2020.

Through its ‘Digital India’ campaign the Government of India isaiming to create a trillion dollar online economy by 2025.

EXECUTIVE SUMMARY

E-commerce

ADVANTAGE INDIA


ADVANTAGE INDIA

India is the fastest growing market for the E-commerce sector with the e-commerce market expected to grow approximately 1,200 per cent by 2026.

Being driven by a young demographic profile, increasing internet penetration and relative better economic performance, India’s E-commerce revenue is expected to jump from US$ 39 billion in 2017 to US$ 120 billion in 2020, growing at an annual rate of 51 per cent, the highestin the world.

The recent rise in digital literacy has led to aninflux of investment in E-commerce firms, levelling the market for new players to set uptheir base, while churn out innovative patterns to disrupt old functioning.

E-commerce industry in India witnessed 21 private equity and venture capital deals worth US$ 2.1 billion in 2017. E-commerce and consumer internet companies in India received more than US$ 7 billion in private equity and venture capital in 2018.

In India 100 per cent FDI is permitted in B2B E-commerce,

As per the new Foreign Direct Investment (FDI) policy, online entities through foreign investments can not offer the products which are sold by retailers in which they hold equity stake.

As per new guidelines on FDI in E-commerce, 100 per cent FDI under automatic route is permitted in marketplace model of E-commerce.

The heavy investment of Government of India in rolling out the fiber network for 5G will help boost ecommerce in India.

ADVANTAGEINDIA

Source: Media sources, Aranca Research, Grant Thornton, EY

A lot of India’s blue-chip PE firms had previously avoided investing in E-commerce but are now looking for opportunities in the sector.

India’s start-up ecosystem is growing supported by favourable FDI policies, Government initiatives like Start-up India and Digital India, as well as rising internet penetration driven by market players like Reliance Jio.

Note: FDI – Foreign Direct Investment

E-commerce

MARKET OVERVIEW


GROWTH OF E-COMMERCE IN INDIA

1420

3950

64

84

188200

0

50

100

150

200

250

2014 2015 2017 2018 F 2020 F 2021 F 2025 F 2027 F

Propelled by rising smartphone penetration, the launch of 4Gnetworks and increasing consumer wealth, the Indian E-commercemarket is expected to grow to US$ 200 billion by 2027 from US$38.5 billion in 2017.

E-commerce is increasingly attracting customers from Tier 2 and 3cities, where people have limited access to brands but have highaspirations.

Average online retail spending in India was US$ 224 per user in2017.

The Government e-marketplace (GeM), three years after itsinauguration saw a cumulative procurement by the central and stategovernments of Rs 24,183 crore (US$ 3.46 billion) in FY19 and hasa target of Rs 50,000 (US$ 7.15 billion) crore in FY20.

By 2022, smartphone users are expected to reach 476 million and E-commerce sector expected to grow 1,200 per cent by 2026.

E-commerce Industry in India (US$ billion)

Notes: *Estimated, F – Forecasted

Source: Media sources, BCG – The $250 billion Digital Volcano, BCG – Digital Consumer Spending in India, Bain & Company – Unlocking Digital for Bharat, Morgan Stanley


RISING INTERNET PENETRATION IN INDIA

4.00

4.40

5.10 7.

50 10.1

0 12.6

0 15.1

0 18.0

0

27.0

0

34.8

0

34.4

2

38.0

2

48.4

8

0.0

10.0

20.0

30.0

40.0

50.0

60.0

2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019

Source: Economic Times, Live Mint, Department of Telecommunications, Bain & Company – Unlocking Digital for Bharat

Internet penetration in India grew from just 4 per cent in 2007 to34.42 per cent in 2017, registering a CAGR of 24 per cent between2007 and 2017. As of December 2018 overall internet penetration inIndia was 46.13 per cent.

Urban India with an estimated population of 444 million as per 2011census, already had 390.91 million people using the internet as ofDecember 2018.

Rural India, with an estimated population of 906 million as per 2011census, has 213.30 million internet users as of December 2018.There is therefore a great opportunity for increasing penetration inthe rural areas. Internet penetration in rural India is expected to growas high as 45 per cent by 2021 compared to the current rate of21.76 per cent .

Rural internet subscriber base stood at 227.01 million and rural Indiapenetration was 25.36 per cent in FY19.

Urban internet subscriber base stood at 409.72 million and itspenetration was 97.94 per cent in FY19.

Number of active internet users in the country is the second highestglobally and data usage of 8 GB/subscriber/month is comparable todeveloped countries.

Internet Penetration in India (%)

Note: Internet penetration - number of internet subscribers per 100 population


ONLINE RETAIL MARKET

The online retail market in India is estimated to be worth US$ 17.8 billion in terms of gross merchandise value (GMV) as of 2017.

India has secured the highest CAGR among major economies in online sales at 70 per cent in the online retail market over the years 2012-17. Onlineretail sales in India are expected to grow by 31 per cent to touch US$ 32.70 billion in 2018, led by Flipkart, Amazon India and Paytm Mall.

E-retail market is expected to continue its strong growth, by registering a CAGR of over 35 per cent and to reach Rs. 1.8 trillion (US$ 25.75 billion) byFY20.

Electronics is currently the biggest contributor to online retail sales in India with a share of 48 per cent, followed closely by apparel at 29 per cent. By2025, non-electronics categories are expected to take 80 per cent share in online retail in India.

As of July 2018, the number of transactions in E-commerce retailing are 1-1.2 million per day and on E-commerce platforms are 55-60 million permonth.

With cost of servicing tier-II and other smaller cities going down, most of e-retail’s growth in the country is going to come from there. Overall, onlineshoppers in India are expected to cross 120 million in 2018 and eventually 220 million by 2025.

Source: Report by eMarketer, Kalaari Capital – Imagining Trillion Dollar India

Shares of Various Segments in E-commerce Retail by Value (2018)

48%

29%

9%

8%3%

3% Electronics

Apparels

Home andFurnishingBaby, Beauty andPersonal CareBooks

Others25125

55

95

0

50

100

150

200

250

2017 2025Tier-II and below Metro & Tier-I

Visakhapatnam port traffic (million tonnes)Online Shoppers in India (million)


ONLINE RETAIL VS TOTAL RETAIL IN INDIA

95%

5%

Offline Retail Online Retail

Online retail out of total retail in India (2020)

97.1%

2.9%

Offline Retail Online Retail

Online retail out of total retail in India (2018E)

There are a lot of opportunities for e-retailers in India to capitalize upon with the gradually growing internet penetration in India.

As of 2016-17, online retail made up 1.5 per cent of overall retail market in India and is expected to contribute 2.9 per cent in 2018. 20 per cent oforganized retail market.

The online retail market in India increased from US$ 14.5 billion in 2016 to US$ 17.8 billion in 2017 and is expected to grow to US$ 73 billion by2022 at a CAGR of 29.2 per cent.

Source: Redseer, Crisil, Report by eMarketerNote: E-Expected


E-COMMERCE RETAIL LOGISTICS MARKET IN INDIA

The E-commerce retail logistics market in India is estimated at US$ 1.35 billion in 2018 and is expected to grow at a 36 per cent CAGR over thenext five years.

Around 1.9 million shipments are currently being handled every day with metro cities contributing around 50 per cent of this demand

Logistics is a major driver of the E-commerce retail industry and is an important point of differentiation between market players aiming at bettercustomer satisfaction and service.

Currently in-house (captive) logistics arms of large retailers execute the most shipments, followed by E-commerce focused logistics service provides(LSPs) and traditional LSPs.

India Post introduced its E-commerce portal leveraging its parcel business network. As of December 2018, full fledged operations have beenlaunched.

Source: KPMG Report – E-commerce Retail Logistics India Notes: CAGR – Compound Annual Growth Rate

49%

28%

23%

CaptiveLogistics Arms

E-commerceretail focusedLSPs

TraditionalLSPs

E-commerce Retail Logistics Landscape in India (2018) E-commerce Retail Logistics: City-Wise Shipments

12% 10%

38%

50%

50% 40%

2017 2022

Metros

Tier 2 andbelow cities

Tier 1 cities


E-TAILING MARKET BY BUSINESS MODEL

E-commerce

Marketplace Model

Marketplace model adheres to the standards and directions of azero inventory model. For example, Naaptol, eBay and Shopclues.

The E-commerce marketplace becomes a digital platform forconsumers and merchants without warehousing the products.Marketplaces do offer shipment, delivery and payment help tomerchants by tying up with some selected logistics companies andfinancial institutions.

The new FDI policy rules and regulations in the E-commercemarket have permitted 100 percent FDI in the E-commercemarketplace model under the automatic route.

Inventory-led Model

Inventory led models are those shopping websites where onlinebuyers choose from among products owned by the onlineshopping company or shopping website take care of the wholeprocess end-to-end, starting with product purchase, warehousingand ending with product dispatch.

A few examples of such are Jabong, Yepme and LatestOne.com.

Source: PWC


KEY PLAYERS

E-commerce

STRATEGIES ADOPTED


STRATEGIES ADOPTED…(1/2)

Paytm Mall, E-commerce platform of Paytm, is planning to expand its groceries segment and is targeting aGross Merchandise Value (GMV) of US$ 3 billion from this segment by the end of 2018.

Flipkart and Amazon have also entered the second hands good market in India which is estimated to bearound US$ 17 billion.

Reliance retail is going to launch online retail this year. It has already launched its food and grocery app forbeta testing among its employees.

In the festive month beginning October 10, 2018, Gross Merchandise Value (GMV) expanded year-on-yearfor Flipkart at about 90 per cent and for Amazon at about 70 per cent.

As of December 2018, Amazon is planning to buy stakes in Future Retail to enter into physical retail sector inIndia.

Flipkart, India’s largest e-commerce entity announced the launch of data centre in Hyderabad besidesinvestments in the state to strengthen its technology infrastructure.

Amazon is rapidly expanding in its video streaming (Prime video), Voice assistants (Alexa), and food retail(Prime now) services in India.

Expansion

Guaranteed one day deliveries, exclusive deals and video streaming for a subscription fee, as in the case ofAmazon Prime. India is currently the fastest growing market for Amazon Prime.

Flipkart introduced its own payment gateway Payzippy and also, its own logistics and supply chain firm Ekart. E-commerce websites are also introducing e-Wallet services; for example - Amazon’s Pay Balance .It has

also got capital infusion of Rs 2,771 crores from its launch. Paytm has launched its bank - Paytm Payment Bank. Paytm bank is India's first bank with zero charges on

online transactions, no minimum balance requirement and free virtual debit card GMV of sales financed through no-cost EMIs has increased to 20 per cent from 4-5 per cent share two years

ago. As on January 2019, PhonePe, a payment services company of Flipkart is set to enter the financial services

market by providing mutual funds through its app. As of March 2019, Flipkart launched its internal fund of about US$ 60-100 million to invest from early stage to

seed innovations related to e-commerce industry.

Ancillary services

Source: Media sources, Company websites, Kalaari capital – India Trends 2018


E-commerce companies are increasingly adopting subscription model to provide extra benefits and tailoredservices to customers to suit their needs.

Amazon introduced Amazon Prime, a subscription based service for Amazon customers, in 2016. members ofAmazon Prime could avail early access to selected deals, free one day delivery and other benefits. AmazonPrime subscribers in India stood at around 5-6 million as of December 2016

In 2014, Flipkart introduced Flipkart First, a premium subscription based services wherein a customer getsfree delivery, discounted same day delivery, priority customer service etc.

In 2018 even Swiggy , Zomato and Myntra came up with subscription models to attract consumers.

Subscription for E-commerce

Site visitors demand one-of-a-kind experiences that cater to their needs and interests. Technology isavailable, even to smaller players, to capture individual shoppers’ interests and preferences and generate aproduct selection and shopping experience led by individualised promotions tailored to them.

Many E-commerce websites provide personalised experience to customers to cater to their needs andinterests depending upon their location, choices, products they like or buy, websites they visit etc.

This strategy has helped companies to know customers’ demands better and serve them accordingly. To give more personalised experience e-commerce sites have adopted voice search technology. Myntra has

been the first one to adopt it. Phonepe introduced a stores tab and launched a merchant app to give more holistic experience to customers

and ease for merchants as well.

Personalised Experience

STRATEGIES ADOPTED…(2/2)

To expand their reach, brands are tying up with assisted E-commerce organisations which provide localmerchants with a platform to place their orders.

Under this, the consumers do not place online orders on their own. Instead, the order is placed on themerchant shops with their help and the product is either delivered to the shop or customer’s address.

This model can become an enabler for online retailers to expand their outreach in areas where internetpenetration is low.

Assisted Commerce

E-commerce

GROWTH DRIVERS AND OPPORTUNITIES


GROWTH DRIVERS FOR E-COMMERCE

Growth drivers

Increasing awareness

InvestmentGovernment initiatives

Government initiatives like Digital India are constantly introducing people to online modes of commerce.

Favourable FDI policy is attracting key players.

Government proposed the “National E-commerce Policy”, set up the lawful agenda on cross-border data flow, no data will be shared with foreign government without any prior authorization of Indian government.

Increasing FDI inflows, domestic investment, support from key industrial players is helping in the growth of E-commerce.

As the awareness of using internet is increasing, more and more people are being drawn to E-commerce.

Whether it be sellers, buyers, users or investors, people have started getting used to online mode or commerce.

Source: Aranca Research


DEMOGRAPHIC FACTORS

Over 120 million people are expected to shop online in 2018 and this number is expected to go up to 175million by 2020.

Mobile-savvy shoppers are the backbone of India’s online shopping industry.

Men in India are more avid shoppers than women in part because of demographic and cultural differences.

Online Shoppers

Discounts and EMIs added with a comfort of sitting at home and purchasing has become an effective drivingfactor of E-commerce. Availability of various websites gives customers a lot of options to choose from.

Chatbots and personal assistance apps have made transactions seamless.

One can get several brands and products from different sellers at one place. Also, one can get in on the latestinternational trends without spending money on travel; you can shop from retailers in other parts of thecountry or even the world without being limited by geographic area.

Convenience of E-commerce

Metro cities like Bengaluru, Mumbai, and Delhi, with population greater than 100,000, accounted for mostonline shopping in absolute numbers.

E-commerce business of several companies like ShopClues, Craftsvilla, etc., has observed crisis in tier IIcities, after racking up around US$ 400 million in investor capital.

Less densely populated regions generated a larger proportion of online sales. Nearly 60 per cent ofSnapdeal’s purchases came from cities classified as tier II and III.

Flipkart also noted that “sales of branded products across categories saw a sharp increase, as more of tier 2and tier 3 Indian towns took to shopping online.

Tier II and Tier III cities provide major sales

Although shoppers between 25 and 34 years of age were most active on E-commerce portals, a surprisingnumber of older people also shopped online in 2016.

However, the age group of 15-34 years are the major consumers of E-commerce.

The popularity of web series among millenials is growing immensely.

Millennials are the most active

Source: Economic Times, Media sources, Aranca Research


FACTORS DRIVING E-COMMERCE GROWTH… (1/2)

Online retailers see this emergent segment as a new growth driver as the incremental growth in mobilesubscribers can be credited mainly to people who are comfortable with languages other than English.

Indian language users on the internet are expected to reach 540 million by 2021.

In August 2018, Flipkart acquired an artificial intelligence company Liv.ai, which converts speech to text in 10Indian languages.

Reverie Language Technologies is expected to raise US$ 20 million to achieve its vision to create languageequality on the internet.

Internet content in local languages

Consumer demand can be seen increasing even in small towns and cities.

Less densely populated regions generated a larger proportion of online sales. Nearly 60 per cent ofSnapdeal’s purchases came from cities classified as tier II and III.

Growth in non-metro cities

Online retailers’ growing reach in town and cities beyond metros is driven by an increasing in usage of mobileinternet in the country. Increased ownership of smartphones is helping more Indians access shoppingwebsites easily.

Rise in smartphone usage is expected to reach 50 per cent penetration by 2020.

In FY2019, Out of total internet subscribers, 93.39 per cent of subscribers used internet service throughmobiles

The number of mobile internet users is expected to reach 478 million by June 2018 and 37.36 per cent of thetotal population by 2021 which will further boost the mobile commerce sector in India.

Mobile Commerce

Source: Media sources, Kalaari capital – India Trends 2018

Online retailers now deliver to “12,500-15,000 pin codes” out of nearly 100,000 pin codes in the country.

With logistics and warehouses attracting an estimated investment of nearly US$2 billion by 2020, the reach ofonline retailers to remote locations is set to increase.

Indian warehousing sector is expected to grow by at least 100 per cent by 2021.

In April 2018, Amazon announced its plans to add five new fulfilment centres in India and retain its position asthe largest warehousing space provider in the country.

Growth of logistics and warehouses


FACTORS DRIVING E-COMMERCE GROWTH… (2/2)

A net addition of nearly 140 million debit cards has been recorded in the country in the past few years. Usageof debit cards at points of sale terminal has increased by 86 per cent during the same period. This clearlyreflects that people are getting comfortable with using debit cards for activities other than withdrawals at ATM.

Value of Unified Payments Interface (UPI) transactions grew to more than Rs 1.33 trillion (US$ 19.10 billion)in March 2019.

Paytm has launched India's first bank “Paytm Payment Bank” with zero charges on online transactions. PhonePe, a digital payments firm has crossed 2 billion transactions with an annual run rate of transactions

worth US$ 70 billion from its platform. Paytm logs 400 million plus transactions in a month .

Cashless Transactions

Source: Media sources, Aranca Research

Amazon has launched an online Business-to-Business (B2B) market place in India where small and mediumenterprises (SMEs) can buy products.

Power2SME, one of the largest B2B online marketplaces in India that provides raw materials to small andmedium enterprises (SMEs), has raised US$ 36 million from Inventus Capital, Accel Partners and others inSeptember 2017, which will be used towards technology, sales, marketing and geographic expansion.

DesiClik a US based company has entered into strategic partnership with Indian Gifts Portal (IGP) which willoffer range of B2B solutions.

In January 2019, government increased the limit of Foreign Direct Investment (FDI) up to 100 per cent in E-commerce market model.

As of June 2018, Walmart India has activated Unified Payments Interface (UPI) transaction on its online B2Be-commerce site.

B2B E-commerce

Chinese phone manufacturer, Xiaomi Corporation, is planning to invest about US$ 1 billion in 100 Indian start-ups over the coming five years, with an aim to make an ecosystem of apps surrounding its smartphone brand.

In December 2018, Flipkart’s parent company invested Rs 1,431 crore (US$ 201 million) in its wholesaleentity in India.

US$ 6.25 billion have been invested in logistics sector in 2019.

In March 2019, Paytm is about to raise US$ 1.5-2 billion from its existing investors SoftBank Vision Fund andAlibaba’s financial affiliate Ant Financial.

Increasing Investments

Note: B2B – Business to Business


INCREASE IN SMARTPHONES DRIVING E-COMMERCE GROWTH

India’s Smartphone Shipments (million)

14.5 17

.5 42.5

79.5 10

2.0

108.

0 124.

0 142.

3

32.1

020406080

100120140160

2011 2012 2013 2014 2015 2016 2017 2018 2019(up tpMar)

The proliferation of mobile devices combined with internet access via affordable broadband solutions and mobile data is a key factor driving thetremendous growth in India’s E-commerce sector.

Smartphone shipments in India increased 14.50 per cent year-on-year to reach 142.30 million units in 2018, thereby making it the fastest growingmarket of the top 20 smartphone markets in the world.

During September-December quarter 2018, smartphone shipment in India grew 19.5 per cent year-on-year to 36.3 million shipments. It isexpected to reach 160 million in 2019.

Smartphone users in India are expected to reach 442 million by 2022.

Currently, mobile phones account for about 40 per cent of Gross Merchandise Value (GMV).

Source: IMF, World Bank, International Data Corporation (IDC), Counterpoint Research, Media Sources

Smartphone User Base in India (million)

340

402442

050

100150200250300350400450500

2018 2020 2022


GOVERNMENT AND PRIVATE INITIATIVES INFLUENCING E-COMMERCE

Source: Bain & Company – Unlocking Digital for India, Union Budget 2018-19, Media Sources

In the Union Budget of 2018-19, government has allocated Rs 8,000 crore (US$ 1.24 billion) to BharatNetProject, to provide broadband services to 150,000-gram panchayats.

The project has a target to connect 250,000-gram panchayats by March 2019. The government has also plannedto set up 500,000 Wi-Fi hotspots for providing broadband service to 50 million rural citizens.

The government has also allocated Rs 3,073 crore for the Digital India Mission in 2018-19. Under the DigitalIndia movement, government launched various initiatives like Udaan, Umang, Start-up India Portal etc.

Bharat Net and Digital India

In February 2019, the Government of India released the Draft National e-Commerce Policy which encouragesFDI in the marketplace model of e-commerce. Further, it states that the FDI policy for e-commerce sector hasbeen developed to ensure a level playing field for all participants. According to the draft, a registered entity isneeded for the e-commerce sites and apps to operate in India.

The telecom provider offered free high-speed internet access to users for first seven months.

E-commerce draft policy

It has also allowed users to access all online services through a family of apps, creating a whole ecosystem forthem.

Reliance to invest Rs 20,0000 crore (US$ 2.86 billion) in its telecom business to expand its broadband and E-commerce presence and to offer 5G services.

As of January 2019, Reliance Retail along with Reliance Jio plans to launch a new e-commerce platform in Indiawith Gujarat to be the first state to get it. The debut will be made in Diwali when most of the sales are made.

Reliance to launch its GigaFiber FTTH services in 1,600 cities after testing its broadband connection in selectedcities.

Reliance Jio

Udaan is a B2B online trade platform to connect small and medium size manufacturers and wholesalers withonline retailers and also provide them logistics, payments and technology support.

The platform has sellers in over 80 cities of India and delivers to over 500 cities.Udaan

Under this project Google and Tata Trust have collaborated to improve internet penetration among rural womenin India.

The project has influenced over 16 million women in India and reached 166,000 villagesInternet Saathi


PRIVATE INVESTMENTS IN E-COMMERCE

E-commerce industry in India witnessed 21 private equity and venture capital deals worth US$ 2.1 billion in 2017 and 40 deals worth US$ 1,129 million in the first half of 2018.

E-commerce and consumer internet companies in India received more than US$ 7 billion in private equity and venture capital in 2018.

Company Investor Funding (US$ million)

Flipkart SoftBank 2,500

BigBasketAlibaba Group Holding Ltd, Sands Capital, International Finance Corp,

Abraaj Capital300

PayTm Berkshire Hathaway 356

CarDekho Sequoia India, Hillhouse Capital, Capital G and Axis Bank 110

Udaan Lightspeed Venture Partners US and other 50

Capital Float Ribbit Capital, SAIF Partners, Sequoia India 45

Bank Bazaar Experian Plc 30

Droom Asset Management (Asia) Ltd, Digital Garage Inc 20

1 mgHBM Healthcare Investments, Maverick Capital Ventures, Sequoia India,

Omidyar Network and Kae Capital15

Gozefo Sequoia Capital India, Helion Venture Partners and Beenext Pte Ltd 9

Jumbotail Kalaari Capital, Nexus India Capital Advisors 8.5

Blackbuck InnoVen Capital 7.7

KartRocket.com Bertelsmann India Investments, Nirvana Digital India Fund 4.1

The Label Life Kalpavriksh, Centrum group’s maiden private equity (PE) fund 3.1

Funding Activities

Source: Media sources, Aranca Research, Inc42, EY

E-commerce

INDUSTRY ASSOCIATIONS


KEY INDUSTRY ASSOCIATIONS

E-commerce Association of India

Address: 111/112, Ascot Centre, Near Hotel ITC Maratha,

Sahar Road, Sahar, Andheri (E)

Mumbai – 400099

Phone: +91 22 28269527 - 29

Fax: +91 22 28269536

E-mail: [email protected]

Address: 122, 1st Floor, Devika Tower

Corporate Business District, Nehru Place

New Delhi –110 019

Phone: +91 011 41582722

Fax : +91 011 41582722

Email: [email protected]

Retailers Association of India (RAI)

mailto:[email protected]

mailto:[email protected]

E-commerce

USEFUL INFORMATION


GLOSSARY

CAGR: Compound Annual Growth Rate

GMV – Gross Merchandise Value

FDI: Foreign Direct Investment

FY: Indian Financial Year (April to March)

GOI: Government of India

INR: Indian Rupee

US$: US Dollar

Wherever applicable, numbers have been rounded off to the nearest whole number


EXCHANGE RATES

Exchange Rates (Fiscal Year) Exchange Rates (Calendar Year)

Year INR INR Equivalent of one US$

2005–06 44.28

2006–07 45.29

2007–08 40.24

2008–09 45.91

2009–10 47.42

2010–11 45.58

2011–12 47.95

2012–13 54.45

2013–14 60.50

2014-15 61.15

2015-16 65.46

2016-17 67.09

2017-18 64.45

2018-19 69.89

Year INR Equivalent of one US$

2005 44.11

2006 45.33

2007 41.29

2008 43.42

2009 48.35

2010 45.74

2011 46.67

2012 53.49

2013 58.63

2014 61.03

2015 64.15

2016 67.21

2017 65.12

2018 68.36

Source: Reserve Bank of India, Average for the year


DISCLAIMER

India Brand Equity Foundation (IBEF) engaged Aranca to prepare this presentation and the same has been prepared by Aranca in consultationwith IBEF.

All rights reserved. All copyright in this presentation and related works is solely and exclusively owned by IBEF. The same may not be reproduced,wholly or in part in any material form (including photocopying or storing it in any medium by electronic means and whether or not transiently orincidentally to some other use of this presentation), modified or in any manner communicated to any third party except with the written approvalof IBEF.

This presentation is for information purposes only. While due care has been taken during the compilation of this presentation to ensure that theinformation is accurate to the best of Aranca and IBEF’s knowledge and belief, the content is not to be construed in any manner whatsoever as asubstitute for professional advice.

Aranca and IBEF neither recommend nor endorse any specific products or services that may have been mentioned in this presentation and nor dothey assume any liability or responsibility for the outcome of decisions taken as a result of any reliance placed on this presentation.

Neither Aranca nor IBEF shall be liable for any direct or indirect damages that may arise due to any act or omission on the part of the user due to anyreliance placed or guidance taken from any portion of this presentation.

e-commerce - ibef.org · b2b e-commerce, as per the new foreign direct investment (fdi) policy,...

Documents